Community Benefits Banking Act of 1988

Community Benefits Banking Act of 1988 - Title I: Community Benefits Amendments - Community Benefits Amendments of 1988 - Amends the Bank Holding Company Act of 1956 and the National Housing Act to require that minimum community reinvestment standards be met by bank holding companies and savings and loan holding companies prior to any approval of such a holding company's application for the acquisition of: (1) out-of-State subsidiaries; or (2) interests in certain nonbanking organizations. Applies identical standards to the acquisition of a bank by a securities firm.

Specifies such minimum standard as an imputed community reinvestment rating of two or better. Defines "imputed community investment rating" of a holding company as the community reinvestment rating assigned to the subsidiary of such holding company with the most unfavorable community reinvestment rating during the most recent examination of such subsidiary under the Community Reinvestment Act of 1977. Provides special rules for holding companies with five or more subsidiaries in one State and for subsidiaries with ratings assigned prior to the date of enactment of this Act. Specifies that the rating for a securities firm shall be the imputed community reinvestment rating assigned to the bank such firm is seeking to acquire. Allows conditional approvals in certain cases.

Requires the disapproval of such an application if the applicant holding company or any subsidiary has established a pattern of: (1) acquiring or chartering federally-insured depository institutions or opening or closing deposit facilities in a manner that tends to exclude low- and moderate-income neighborhoods or equivalent areas; or (2) failing to provide reasonably priced and accessible deposit services to low- and moderate-income persons.

Prohibits the approval of any application of a holding company to engage in securities activities or of a securities firm to acquire a bank unless the applicant enters into commitments assuring that the combination of banking and nonbanking activities will not diminish the availability of credit and deposit services for low- and moderate-income persons or within low- and moderate-income neighborhoods or equivalent areas.

Sets forth procedures for the approval of such applications by the appropriate Federal regulatory agency, including provisions requiring newspaper notices of applications, requiring the acceptance of public comments, and authorizing the holding of informal hearings.

Amends the Community Reinvestment Act of 1977 to require the appropriate Federal regulatory agency to publish a newspaper notice of the examination of a financial institution's record of meeting the credit needs of its entire community, including low- and moderate-income neighborhoods. Requires each regional unit of the appropriate Federal regulatory agency to prepare and mail to any requesting person a weekly bulletin listing the insured depository institutions within such region undergoing such an examination.

Requires the appropriate Federal regulatory agencies to jointly develop a format for collecting data from insured depository institutions in connection with such examinations. Requires that peer group categories be included within such format. Provides that in the case of insured depository institutions with assets of $100,000,000 or more such format may require that additional amounts and types of performance data be collected.

Requires the appropriate Federal regulatory agencies to prepare a written evaluation, following each such examination, of the institution's record of meeting the credit needs of its entire community, including low- and moderate-income neighborhoods. Specifies that such evaluation shall have a public section and a confidential section which identifies customers, officers, and employees. Sets forth topics to be considered in such evaluation.

Requires the appropriate Federal regulatory agencies to jointly prepare and publish, on an annual basis, peer group reports based on established performance data.

Requires the appropriate Federal regulatory agencies to jointly develop and publish criteria for rating an insured depository institution's performances in meeting the credit needs of its entire community, including low- and moderate-income neighborhoods. Requires each such agency to assign such a rating to each depository institution. Provides for a five-year transition period in the development of such ratings. Sets forth a comparative rating scale from one-excellent to five-poor or substantial noncompliance during such transition period. Sets forth criteria to be considered in developing a permanent normative five-grade rating scale ranging from one-excellent to five-unsatisfactory or substantial noncompliance.

Specifies that in approving an application, or assessing, compiling data, or rating the performance of an insured depository institution pursuant to this Act, the appropriate Federal regulatory agency may take into consideration the activities of an institution's parent holding company or nonbank or nonthrift institution affiliates which help to meet the credit needs of the institution's local community, including low- and moderate-income neighborhoods.

Title II: Agency Reforms - Requires each appropriate Federal regulatory agency (the Comptroller of the Currency, the Federal Reserve Board, the Federal Deposit Insurance Corporation, and the Federal Home Loan Bank Board) to establish a division of consumer affairs within such agency. Specifies the duties of such consumer affairs divisions. Requires the consumers affairs divisions of such agency to coordinate their activities to the maximum extent possible.

Requires each Federal reserve bank to establish a consumer review board. Sets forth the membership of such boards and administrative provisions concerning the operation of such boards. Specifies the duties of each board, including: (1) providing the appropriate Federal regulatory agencies with quarterly reports of financial services needs within such board's region that are not being adequately served; and (2) reviewing the performance of such agencies with regard to examination standards and practices, disposition of consumer complaints, and enforcement procedures.